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Transportation
| A number
of components go into your natural gas bill. There is the natural gas your business
burns of course, the Atlanta Gas Light charges, and for most MXenergy commercial
customers there is an interstate transportation charge. Transportation
charges contribute to the cost of getting natural gas to your building's meter.
Natural gas is pumped from under the ground or the sea, and then piped to the
terminal of an interstate pipeline where it is transported to the entry point
for the local system (known as a City Gate.) The companies that operate those
pipelines charge for the service of transporting MXenergy's natural gas.
Under
the rules governing the natural gas market in Georgia, interstate pipeline companies
bill all marketers based on the amount of gas flowing through the line on the
peak usage day of the year. The pipeline must have the capacity to handle that
much natural gas and they bill marketers like MXenergy for the cost of maintaining
that capacity. MXenergy passes these charges to you at our cost.
MXenergy
quotes a commodity (per therm) price plus interstate transportation charges for
commercial customers. This allows us to price the gas at a more competitive rate
and you to pay for only the transportation of natural gas that your business uses.
Each meter on the Atlanta Gas Light distribution system
is assigned a unique DDDC (Dedicated Design Day Capacity) factor that reflects
peak usage requirements, or the cost of delivering gas to that meter on the coldest
day of the year of the day when the most gas was used in the preceding year. One
business with a high DDDC number may be next door to a business with a lower DDDC.
The business with the lower DDDC could end up paying for more transportation than
they actually used if all charges were included in the commodity price. Combining
transportation and commodity charges into one inclusive rate makes sense for residential
customers. As a general rule residential customers do not use as much gas as commercial
accounts and tie up far less transportation capacity. Their DDDC charges are therefore
lower. Earlier we noted that MXenergy is charged for
interstate transportation. Once the gas is in the Atlanta Gas Light system it
must be transported through AGL pipelines to your meter. The cost of that transportation
is included in the Atlanta Gas Light charges on your bill, along with other AGL
costs. MXenergy collects those charges from you then pays AGL. For a description
of all the AGL Charges click here. |
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Call Toll Free
800.785.4373